The Japanese car giant has just bought a $35.8 million dollar stake in pedigree audio-video brand, Pioneer Corporation, as part of a plan to boost the audio experience in its cars.

Honda will benefit from Pioneer's market leading innovations including touch-screen head units, amplifiers, speakers and sub-woofers.

Pioneer's leading-edge in-car and hybrid sat-nav units are also expected to be snapped up by Honda.

The significant investment will be handled through a third-party allotment of shares to Honda, says a Pioneer spokesman in Australia.

The Pioneer connection comes as more and more carmakers look for premium audio partners, from Bose and Bang&Olufsen to Mark Levenson at Lexus and Bowers&Wilkins at Jaguar.

The new deal comes after Pioneer posted a massive net loss of $1.66 billion for its fiscal year, which closed March 31.

Pioneer has also hammered out a joint venture with Shanghai Automotive Industry to develop, build and sell intelligent transport systems, car navigation and audio-video systems. The link will give the Japanese company better access to price-driven Chinese manufacturing systems.

Pioneer's latest financial results are no surprise as the global economic slump has hit the world's car and audio-video manufacturers particularly hard.

Industry analysts say the way car and consumer electronics brands do business has permanently changed and most will post heavy losses this year.

Pioneer has already reacted to the global downturn by ending production of its award-winning range of plasma televisions and shedding staff globally.

The brand's core business will now by be led by car electronics, home audio-video products DJ equipment and set-top boxes.

Australian car audio fans will benefit from Pioneer's plans to streamline its local subsidiary as it intends to focus on specialist retailers and boosting customer care service.

So, your next Honda could have Pioneer's DEH-4150SD CD head unit in the dash. If you get lucky.

As well as providing crystal-clear sound quality from CDs and radio, the Pioneer has a USB connection for an iPod or iPhone.

There is also a handy SD Memory card slot for drivers or passengers who like to store music on SD cards.

And who wouldn't want their Honda supplied with one of Pioneer's 8, 10 or 12-inch subwoofers which have speaker cones made from — I kid you not — volcanic-rock fibres. The new technology adds a new meaning to subterranean bass.

However, Skoda Australia is confident the Volkswagen Tiguan-based off-roader will be a starter and potential best-seller for the brand.

Volkswagen Group Australia spokesman, Karl Gehling, says VW Group Australia executives have assessed the car and loved it.

But all he can say is that it is "under consideration at the moment".

"It comes down to whether we can get it in and for the right price," Gehling says.

"There is a lot of work to be done."

Gehling believes the off-roader could be the one car that has a chance to propel Skoda Australia into the mainstream and lift the brand's awareness among buyers.

The Czech brand is still trying to build momentum locally.

It was relaunched at the end of 2007 into a strong market but since then the new car market has collapsed.

However, with the refreshed Octavia petrol and TDI range on sale and the RS performance sedan and wagon and the Scout crossover due later this year, the company is planning for better times.

If, and when the Yeti arrives, Gehling does not think it will compete or take sales from the competent Scout.

"They are essentially two distinct cars," he says.

Skoda's European executives say the Yeti would be a good fit for Australia.

They believe that it could undercut the Tiguan on price, like it will do in Europe when the off-roader goes on sale in a few months.

The Yeti will be available in Europe with both all-wheel drive and front-wheel drive with the opener being a 1.2-litre TSI petrol engine driving the front wheels.

Buyers will also have a choice of another 1.8-litre TSI petrol engine, as well as three turbo-diesels of 81kW, 103kW and 125kW.

The 81kW will be available with either front or all wheel drive, while the rest of the TDIs will use the same Haldex all-wheel drive system shared with Tiguan, which automatically engages when needed.

The compact off-roader is 4200mm long a features distinctive styling. The wagon also has 1760 litres of luggage space with the rear seats removed.

As it is based on the Tiguan, the Yeti is expected to handle well and cope with moderate off-roading.

Momentum is building for the car across Europe and it has already received some favourable reviews.

Germany's Autobild magazine has even voted the Yeti ahead of the Tiguan in a recent test of five Volkswagen cars against five Skodas.

It’s starting to look that way with the spread of blink-fast double-clutch automatic systems.

And people are apparently happy to pay more for them.

For example, the six-speed S-tronic dual-wet-clutch transmission arrives in the Audi S3 Sportback 2.0 TFSI for an extra $2700, bringing the list price to $71,010.

Audi, which debuted the transmission in the TT 3.2 quattro in 2003, claims the S-tronic reduces the 0-100km/h acceleration time by 0.2 seconds to 5.6 while economy is improved to 8.4 litres/100km with CO2 emissions of 195g/km.

The S-tronic is a perfect partner for the turbocharged engine, swapping cogs so quickly the blower doesn't get a chance to drop revs, thus keeping the power on.

Audi Australia product planning manager John Roberts believes the S-tronic model will not only become the top-selling S3, but will also lift volumes.

Currently the S3 Sportback ($68,310) is the top seller with 62 per cent of S3 sales.

However, Roberts claims the S-tronic will reach 65 per cent, dropping the Sportback to 20 per cent and the three-door manual ($66,403) to 15 per cent. He says the S-tronic will target younger buyers and sell about 200 a year.

But it's an own goal for the red team.

The arrival of the Cruze on June 1 means the death of the European Astra, even though it has just been totally renewed and looks the best in the history of the nameplate.

GM Holden has given no confirmation of its plan to drop the Astra from its Australian lineup, but the indications are fairly clear.

"We have to see if there is a business case. We have to see how the numbers stack up," says company spokesman, The numbers are highly unlikely to make sense to Holden, partly because of the likely price for the all-new Astra — which has always been hurt by exchange rates — and partly because Holden will introduce a Cruze hatchback next year which would be in direct conflict with the Astra.

So it will follow the European-built Barina and the mid-sized Vectra, which was always too costly and was eventually overtaken by the Korean- made Epica, into the Holden history books.

Imports of the Astra were cut two months ago because of the currency problem, which has put increasing pressure on maintaining the car's $18,790 starting price in Australia its age.

While the Astra is going, the design of the all-new car points to the impressive work being gone by General Motors Europe on cars which are being sent out as global designs. Much of the work is being translated into the Asia-Pacific region, even if a shared mechanical package is not reflected in the body design.

The Astra is unveiled as a five-door hatch, with an official preview at the Frankfurt Motor Show in September, with a wagon, CC droptop and two-door coupe to follow.

The Astra follows the all-new mid-sized Insignia which led GM into a new design era in Europe and took last year's European Car of the Year crown. It was put through 600 hours of wind tunnel testing to ensure minimum drag and maximum fuel economy and performance.

The Astra was designed by Mark Adams, who says he was aiming for a premium look and feel.

But full details are being withheld, with only exterior shots of the body currently available.

Still, GM Europe says the car will come with a range of Euro 5- compliant petrol and turbodiesel engines, including a turbocharged 1.4- litre four that makes 104 kiloWatts.

The first vehicles from Great Wall will land in the second half of the year, to be followed by Geely and others, but Proton is moving now to establish a price point.

No-one from the Malaysian maker is talking exact details, but Proton is planning to easily undercut the $13,990 Korean price fighters and is aiming for something in the $12,000 range.

It will do the job with a new model based on the baby Savvy, but price fighting will become the key for Proton when it re-positions the whole brand for 2010.

Proton boss John Startari confirms the general push but will not be drawn yet on the details. "We're not talking about the price until closer to the date," says Startari.

"We're working towards January next year. It won't beat the Chinese, but we believe that for the Proton brand to move forward we need to offer value for money and re-invigorate the brand."

He says the new cheapie is the key but admits Proton must do better on price to ever make solid numbers in Australia. The brand has a carpark of around 25,000 here but has yet to reach critical mass, either with customers or dealers.

"We're re-specifying all our cars. That's Gen.2, Satria and Persona. That will happen at the same time," Startari says. "For us, timing is everything. And we really need the range to start at an aggressive price and then have value across the spectrum. By aligning a lower-priced value leader we can meet all demands below $20,000."

The new starter car is basically a Savvy sedan, but with an engine which grows from the current 1.2 in the Savvy hatch to a 1.6-litre Campro. It will have a new name and will not be called Saga, the badge used in Malaysia.

"It's an all-new car. On the price side of thins, the recommended retain price will be plus on-road costs, but the advertised price will be drive-away - just as we do now with the Savvy hatch at $13,990 drive-away," he says.

Startari will not talk about the cost of the price push, or the level of financial support from Malaysia, but admits there is a big budget.

"It will be the biggest spend on marketing in the last seven years. The initial launch budget in 1998 and 1999, when we moved away from Incape and became a factory operation, was the only one that is bigger," Startari says.

He makes no apology for the early announcement of the new focus and says it's not just about undercutting Korean cars or getting an early break on the Chinese.

"Right now we're in a dealer recruitment process and we need to start talking about the future of the brand and products to get the dealers we need to take the brand forward. We need to recruit the best dealer network available, but we are not going to expand at all cost. It will be a matter of only signing dealers who are committed and eager to be a part of growing the brand."

All manufacturers have their ‘foundation’ or defining cars that establish the overall personae of a company and their focus on a particular segment.

The 121 is the car that established Mazda globally as a leading player in the small or sub-compact segment. Previous to the 121, Mazda's small cars were rear-wheel drives such as the 1300 and RX-3, both of which had quite a sporty feel and were not as targeted at the mainstream buyer.

The introduction of the 121 came at a time when Mazda split their small car range in two, essentially providing a sub-compact hatch with the 121 and a compact hatch and later a sedan, with the 323. Both have been very successful for Mazda with the 121 evolving into the current Mazda2 and the 323 into the Mazda3.

The 121 was a result of Ford asking Mazda to design a new small car shared platform to be marketed by Ford as the Festiva (Fiesta in some markets) and the 121 by Mazda. The original 121, built between 1987 and 1990 was a very boxy utilitarian version of the Festiva and is quite a forgettable car. The second series however, affectionately known to some as ‘the bubble’ was somewhat ahead of its time with its attention grabbing styling and bold colours. It has a cuteness that every so often another manufacturer will introduce into their model line, the most recent example being the current Nissan Micra.

While reviews of the design initially split opinions, as is the case with good design, it grew on the vast majority of buyers. And what was hidden under the bubble was a very practical package. The tall roof, door and boot lines offered a great deal of internal space. Boot capacity especially was amazing for the emerging sub-compact class. For such a small car the long wheelbase and very limited front and rear overhang delivered very good road handling, in many ways the layout of the New Mini has replicated that of the 121.

From 1996 the third generation 121 was introduced with a return to the previous boxy utilitarian style. It was marketed here in Australia as the 121 Metro with the most popular version being the ‘Shades’. While it was a sales success in Japan, here in Australia many buyers and journalists saw the new design as a step in the wrong direction. Local sales slumped and Mazda did not recover in this segment until 2002 with the introduction of the Mazda2.

While now 15-20 years old, a good example of 121 Bubble still represents a good purchase for the cost-conscious and first-time buyer. Mazda has always been renowned for build quality and safety and a well maintained and regularly serviced example delivers an economy rate not too far off current comparable vehicles.

Mazda 121 - Sub Compact 1987 - 2002

First Series - 121

Production 1987–1990

Class subcompact car

Body style(s) 5-door Hatch

Engine:

* Inline 4-cylinders, SOHC 16V, SPFI, 1323 cc

* Power 54 kW/5600 rpm

* Torque 103 N•m /3600 rpm

Dimension:

* Length: 3475 mm

* Width: 1655 mm

* Height: 1450 mm

* Wheelbase: 2295 mm

Fuel consumption (city) 7.4 km/litre

Fuel consumption (highway) 5.4 km/litre

Second Series 121 (Bubble)

Production 1990–1998

Class subcompact car

Body style(s) 4-door sedan

Engine:

Inline 4-cylinders, SOHC 16V, SPFI

* 1.3 L B3-ME I4 - 54 kW /5600 rpm - 103 N•m; /3600 rpm

* 1.5 L B5-ME I4 - 74 kw - 127 N•m

Dimension:

* * Length: 3800 mm

* * Width: 1655 mm

* * Height: 1470 mm

* * Wheelbase: 2390 mm

Fuel consumption (city) 7.2 km/litre

Fuel consumption (highway) 5.4 km/litre

Third Series - 121 Metro

Production 1998–2002

Class subcompact car

Body style 5-door Hatch

Engines:

* 1.3 L B3E I4, 61 kW / 108 N•m

* 1.5 L B5E I4, 74 kw 127 N•m

Dimension:

* Length: 3800 mm

* Width: 1670 mm

* Height: 1500 mm

* Wheelbase: 2390 mm

Fuel consumption (city) - 8 km/litre

Fuel consumption (highway) - 6.4 km/litre

The new all-electric Mitsubishi i-MIEV is about to go on sale in the Japanese domestic market for $43,000 – more than its bigger hybrid rivals from Toyota and Honda.

But despite the micro-car's high entry price, Mitsubishi Australia spokesperson, Lenore Fletcher believes it will still be popular when it arrives here, possibly next year. She does not believe its price will be a barrier for acceptance.

Local pricing is not yet confirmed but Fletcher says judging by the reaction of 150 people at recent drive days around the country, the car will be a hit. "If we had 20 i-MIEVs tomorrow they would all be sold," she says. "We've had people trying to give us firm orders for the car."

Participants were surprised by the power and refinement of the little hatch, she says. And she is confident prices will come down as these electric cars become more common and production ramps up to achieve economies of scale. Mitsubishi Australia is bouyed by the fact that many fleets are interested in the car to sell a green message.

The rear-drive i-MIEV develops 47kW, the same as the three-cylinder petrol-powered Mitsubishi "i" but delivers 180Nm from zero revs compared to the petrol car's 94Nm. It also contributes 70 per cent less C02 emissions than a similarly sized hatchback.

The car has been fully certified to Australia Design Rules and has compliance so Mitsubishi Australia is just waiting for the nod from Japan.

It has a range of about 160km from its lithium-ion battery pack. With about 85 per cent of commuters travelling less than 100km a day, Fletcher says the i-MIEV is an ideal city car.

Just 2000 i-MIEVs will be built in Japan this year but the car's popularity has already prompted Mitsubishi to lift production. Next year it will build 5000 cars and by 2013 it hopes to build 30,000 a year.

Mitsubishi, like many leading carmakers pushing the electric button, faces a lack of supply of battery components for their vehicles. The new Toyota Prius goes on sale in July and is expected to cost slightly more than the Honda Insight. Honda Australia is aiming for a sub-$30,000 price for the Insight and had originally hoped to have it on sale here this year. However, the car's popularity overseas has pushed out its local launch to the second half of 2010.

In Japan, the i-MIEV will initially be sold to fleets with private sales starting later this year. Apart from Australia, it will be sold in Europe and North America.

Mitsubishi, along with Nissan Australia, wants more government incentives to get people into electric cars.

The US-based Tesla, which uses lithium-ion batteries and the Lotus Elise as its donor vehicle, is the only producer of highway-capable electric cars in the North American and European markets.

Mercedes-Benz parent, Daimler AG, says it bought the stake and will form a co-operative to make and develop battery systems, electric drivetrains and vehicles.

Tesla provided technology to create the Daimler-owned electric Smart car.

Daimler has 100 Smart electric cars on trial in London and later this year will start production of 1000 versions.

This year Daimler is also starting small-series production of the Mercedes-Benz B-Class with a fuel-cell drive system.

In 2010 it will introduce its first battery-powered Mercedes-Benz and from 2012, Daimler plans to equip all Smart and Mercedes-Benz electric vehicles with its inhouse-produced lithium-ion batteries.

In 2004, Tesla began development of its first electric vehicle, the Roadster, which remains the only highway-capable EV for sale in North America or Europe.

The Tesla Roadster is the first production battery electric vehicle to travel more than 320km per charge. It accelerates from zero to 100km/h in about in 4 seconds.

Tesla will start making its four-door Model S in California in late 2011.

But the Concept BlueSport still lives and is capable of taking on the mighty Mazda MX-5 if a full-scale production plan gets the go- ahead from Volkswagen headquarters in Wolfsburg, Germany.

The gorgeous little BlueSport roadster was rolled out to test its potential at this year's Detroit motor show, but since then the mid- engined sporty has been off the radar. Until now.

Volkswagen executives are now saying the Concept BlueSport could become a reality despite the global downturn short-circuiting many short-term development plans for many car companies.

VW's global production communications chief Christian Haacke admits the almost-production-ready MX-5 fighter remains a challenge in the current global market but it could still become a reality.

"The first challenge is to come up with a plan how to build the volumes required to earn money from such a car," Haacke says. "The second challenge is to finish it and, as you can imagine in the current environment, this presents a problem."

But Haacke believes the concept would be a perfect fit in the growing VW portfolio, which spans everything from budget Skodas up to luxury Lamborghinis. "With our nine brands we are in an excellent zone to help build a car like this. The idea of a small two-seater has been around VW for a long time," says.

Haacke says if the Concept BlueSport gets the green light there are plenty of engine options to fit to the compact sports car, from the new 1.2-litre TSI in the latest Polo to larger 2.0-litre TSI and TDI engines. "Of course we have plenty of engines available," he says.

If the Concept Blue becomes a reality, the car will be built using a similar strategy to that adopted by Fiat with the X1/9 and Toyota with its MR2, taking existing off-the-shelf engines and mechanical pieces before fitting them in purpose-built bodies.

VW will not admit it publicly, but it has looked on with envy at the global success of the MX-5 and thinks it could replicate or better that success with a similarly sized VW-badged sports car that could give the Porsche Boxster and Audi TT a run for their money.

Based on the MX-5 experience, this could mean a mid-engined VW sports car could sell for between $40,000 and $65,000, depending on engine and specifications.

The Concept BlueSport is 4000mm long but tips the scales at less than 1200kg. The show car has a 2.0-litre TDI diesel sitting mid-ships that develops 134kW at 4200 revs and 350Nm from just 1750 revs, through VW's new seven-speed DSG gearbox. This gives the car a zero-to-100km/h sprint time of 6.6 seconds and top speed of 226km/h.

However, apart from outright performance, what makes the BlueSport different is that it averages 4.3 litres/100km yet emits just 113g/km of harmful CO2 emissions.

The show car is no lightweight toy, either, with massive 235x35ZR19 tyres up front and 245x35ZR19s at the rear, bi-xenon LED headlights, touchscreen controls and an easy-to-use soft-top roof that could be removed in seconds. Its leather-clad seats are made from light-weight materials and have single-piece backrests.

Benz execs are not talking about the Brabus version of the Coupe because it's not officially sanctioned. But the company has partnered with Brabus in the past to produce other high-performance models including one of the tiny Smart.

It makes us wonder whether there may in future be room for two performance lines in the Benz lineup — a move that would surely add much-needed sales?

Drivetrain

A 6.1-litre Brabus V8 replaces the standard 5.5-litre unit in the top of the line E500 that will be fitted with an AMG kit as standard when it arrives in our showrooms in July. The bigger V8 puts out 340kW of power and boasts an impressive top speed of 315km/h.

The 6.1-litre engine is a bored and stroked version of the E500's 5.5-litre V8, with a maximum 340kW of power and 615Nm of torque — the latter available from 3100 revs. It'll do the dash from 0-100km/h in just 4.7 seconds.

The increase in engine displacement has been achieved through the installation of a billet crankshaft with longer stroke and larger pistons. The four-valve cylinder heads have also been machined and fitted with custom camshafts. Contributing to the higher power output, the engine management system has been reprogrammed and a sports exhaust system fitted with high-performance metal catalysts.

Appearance

The Brabus model has also been fitted with an aero kit developed after extensive wind tunnel testing. Further highlights include custom wheels up to 20 inches in diameter, sporty yet comfortable suspension solutions and exclusive interior options.

Exterior enhancements include a Brabus front spoiler with LED daytime runners that not only gives the car a more striking appearance, but also reduce lift at high speed.

New aluminium front sport quarter panels with integrated clear-coated carbon-fibre inserts have also been added.

Together with new rocker panels that incorporate LED entrance lights into their undersides, it give the coupe a lower and sleeker stance. You can also option rockers with an integrated illuminated BRABUS logo.

Down the back the Brabus rear apron features a centrally mounted reflector and custom-tailored cutouts either side for the quad tailpipes.

One-piece or multi-piece monoblock light-alloy wheels round out the look, ranging in size from 17 to 20 inches. The larger 20-inchers are fitted with Pirelli or Yokohama rubber, shod with 235/30 ZR 20 in front and 265/25 ZR 20 on the rear axle.

The list of interior options includes stainless-steel scuff plates with illuminated Brabus logo, an ergonomically shaped sport steering wheel and an entirely new interior crafted from especially soft yet durable Brabus Mastik leather and Alcantara.

Platform

A variety of suspension solutions are offered, tailored to the various engines available in the new E-Class. The kits range from simple lowering springs to complete height-adjustable coil-over sport suspension.

Brabus even offers a high-performance brake package, with six-piston aluminium fixed calipers and 360mm vented and cross-drilled discs on the front axle. The rear axle stops with four-piston aluminium fixed calipers.